5 Creative Ways to Afford a Home

One of the more difficult things to overcome when purchasing a home is how to pay for a home. However, finding the money to buy a home does not have to be a difficult process. There are several programs and opportunities for home buyers to find the money for buying a new home.

Below are some creative ways to afford your new home.

1. Down payment assistance programsThese programs give qualified applicants loans or grants to cover all or part of your required down payment. National programs include the Nehemiah program, and the American Dream Down Payment Fund from the Department of Housing and Urban Development, and in the Tampa Bay area, use the Down Payment Resource Center.

2. Seller financing
In some cases, sellers may be willing to finance all or part of the purchase price of the home and let you repay them gradually, just as you would do with a mortgage.

3. Crowdfunding
Under this arrangement, your family, friends, or even a third-party may buy a portion of the home and share in any appreciation when the home is sold. The owner/occupant usually pays the mortgage, property taxes, and maintenance costs, but all the investors' names are usually on the mortgage. When it comes time to sell your home, you split the profits with your other investors.

4. Gifts
Perhaps a family member will loan you money for the down payment or act as a co-signer for the mortgage. Lenders often like to have a co-signer if you have little credit history. Family members also have the ability to give tax-free gifts to family members that can be used to help to afford a home.

5. Second mortgage
While you may be able to make larger monthly payments, but you do not have a lot of money in savings, you may qualify for a short-term second mortgage. This would give you money to make a larger down payment. This may be possible if you’re in good financial standing, with a strong income and little other debt.